Rising Wedge Reversal (1M plot) /GME stock expected to tank HARD
Updated
Given everything we know about this business and the news of horrible quarterly results over the past year and a half, Gamestop is one bad quarter away from total bankruptcy.
Let's take a look at we have going forward on the 1 month chart data:
Falling volume, momentary rise in price these past couple weeks, converging trend lines all signaling a bearish breakout in the short term in classic rising wedge formation. Add to that the MACD approaching zero line crossover, falling RSI, and market indecision on Ichimoku cloud with a bearish lean according to Base Line (Kijun) crossing above Conversion line (Tenkan) & Lagging Span (Chikou) used as filtering despite price hovering within Kumo cloud. Fib-EMAs also showing strong likelihood of a breakout & maintenance of this trend in the short term.
Stay tuned from now until early January 2020 for breakout.
Let's take a look at we have going forward on the 1 month chart data:
Falling volume, momentary rise in price these past couple weeks, converging trend lines all signaling a bearish breakout in the short term in classic rising wedge formation. Add to that the MACD approaching zero line crossover, falling RSI, and market indecision on Ichimoku cloud with a bearish lean according to Base Line (Kijun) crossing above Conversion line (Tenkan) & Lagging Span (Chikou) used as filtering despite price hovering within Kumo cloud. Fib-EMAs also showing strong likelihood of a breakout & maintenance of this trend in the short term.
Stay tuned from now until early January 2020 for breakout.
Note
EXTREMELY HIGH RISK TRADE, HIGH REWARD SCENARIO:the ONE THING that can absolutely put an axe to my analysis is the disturbingly high short ratio being far greater than both the float and shares outstanding. If they actually manage to cook the books/ fudge the numbers in such a way that investors are convinced that the company is making a comeback, then we could very well have a situation mirroring that of Volkswagen AG stock boom in October 2008. CLASSIC SHORT SQUEEZE.
Note
Correction: disturbingly high short interest **Short ratio is also very high and cause for concern for those who are shorting.
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